Indonesian Consumer Preferences on Green Products

Abstract

Consumer awareness to consume environmentally friendly products is increasing. Manufacturers have also been using the concept of green product not merely for the sake of moral ethics, but also for the commercial purposes. Thus, how environmental knowledge and product attributes of the green product are able to enhance the positive attitude of consumers, fostering purchase intention, and ultimately encourage consumers to consume green products are needed to be explained. The data of this survey research were analyzed using structural equation modeling. The results show that the environmental knowledge and product attributes significantly affect attitude, intention, and behavior of consumers to consume the green product. In addition, once the consumers have comprehended the environmental knowledge and the product attributes well, they would put a green product as a priority, being loyal, and voluntary publish their preferences to their social ties. This research has proved that Indonesian consumer have shifted from being the economic man to be the cognitive behaviorism consumer.